Bicycle brand distributor with a small warehouse

Independent bike shops that buy stock to sell on to customers, and sometimes small chains or school and community programs.

You buy bikes and parts from the manufacturer and sell to shops at wholesale prices. Margin comes from the gap after freight, duty, warehousing and warranty costs.

• Sales and account management
• Supplier negotiation and importing basics
• Inventory and cash flow management
• Product knowledge of bikes and components

• Import duties, GST on imports and customs paperwork, so check with a customs broker
• ACCC product safety rules and Australian standards for bikes, helmets and lights, and the state rules for e-bikes and their batteries
• Lithium battery storage and transport rules, including insurance and fire risk at your warehouse
• Large upfront stock purchases and currency movements can strain cash flow
• Warranty and returns: agree with the manufacturer who covers faulty products
• Public liability, product liability and stock insurance, check what is covered
• Check any exclusivity or territory terms in your distribution agreement

Startup costs are typically around $40,000 to $200,000, depending on the brand, how much stock you buy and your warehouse. Large upfront stock purchases and currency movements can strain cash flow, so plan for that.

Monthly revenue is typically around $15,000 to $75,000, depending on the range you carry, how many independent shops you supply and your trade terms. This is revenue, not profit, so factor in stock and warehouse costs.

Check import duties, GST on imports and customs paperwork (a customs broker can help), ACCC product safety rules, Australian standards for bikes, helmets and lights, and state rules for e-bikes and batteries. Also check lithium battery storage and transport rules, and insurance.